As you might have noticed, ValueSignals has gotten a lot faster recently. We perform a massive amount of calculations in real-time as this is the only way to return the correct results. Due to the COVID-related drop in share prices of undervalued stocks, many users have joined. If the growth continues, this could have an impact on performance.
To meet this demand and make the screener and scorecard more responsive for everyone, we more than quadrupled our processing power...[more]
At ValueSignals, our primary concern has always been data quality. Members use our screener to make essential investment decisions, so our data and formulas must be as accurate as possible. To guarantee this, we have made significant investments over the years to improve our data processing engine's transparency so we can investigate potential data issues. We also added advanced rules-based intelligence to ensure that the screener doesn't get corrupted by data errors.
Today we moved to production our next-gen data processing engine built on an industrial-strength platform...[more]
We started our newsletter almost 10 years ago to demonstrate that our screener is a great tool to beat the market. We have rigorously implemented a selected strategy and the results exceeded all our expectations.
Over the past 9.5 years we managed to beat the STOXX600 in 8 years...[more]
A high gross profitability ratio is evidence that a company has sustainable competitive advantage. According to Robert Novy-Marx, controlling for profitability dramatically increases the performance of value strategies, especially amongst the largest, most liquid stocks.
It's important however that when you use this ratio to compare companies, you look at companies operating in the same industry, industry group or sector. On top of that, it's important that you calculate the medians based on a specific stock universe, selecting for instance only companies active in a specific country.
In order to give you these unique new insights, we added the gross profitability ratio to our scorecard...[more]